JD Sports Fashion has swooped for US footwear retailer Shoe Palace in a takeover deal worth $325m.
The sportswear retailer said that its holding company, Genesis Holdings Inc, has acquired 100 per cent of both the issued shares in the Shoe Palace Corporation and the members’ interests in Nice Kicks LLC.
California-based Shoe Palace was established in 1993 by the Mersho family and currently has 167 stores, located in California, Texas, Nevada, Arizona, Florida, Colorado, New Mexico and Hawaii. The business also has a developing eCommerce platform.
According to JD Sports, Shoe Palace generated revenues of $435m last year.
The business is operated by four brothers from the Mersho family. The Mersho Brothers have been issued with equity in Genesis and will own 20 per cent of the enlarged group in the United States.
The acquisition of Shoe Palace complements the group’s existing Finish Line business and JD fascias in the United States. The group recently opened a flagship JD store in Times Square, New York.
JD Sports says the Shoe Palace acquisition will ‘significantly increase’ its presence on the West Coast and strengthen its connection with the Hispanic and Latino consumers, who represent a significant proportion of Shoe Palace’s customer base.
Commenting on the acquisition, Peter Cowgill, executive chairman of JD Sports Fashion, said: ”We are delighted to have completed the acquisition of Shoe Palace.
“We are confident that our combined fascias will provide us with the flexibility and expertise to fulfil our mutual ambition of becoming a prime customer destination for sneakers and lifestyle apparel in the United States.”
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